Serbian products reach China - SIEPA approves RSD 225 mil to exporters

The Serbia Investment and Export Promotion Agency (SIEPA) has approved today grants to local exporters totaling RSD 225 mil.

A total of 340 exporters, 5 exporters- beginners and 8 associations, received funds through the fourteenth Competitiveness Support and Serbian Economy Internationalization Program which was released in March.

The program provides funding for activities implemented as of January 1 until December 1, 2013. As the director of SIEPA, Bozidar Laganin, said, funds are approved based on reimbursement totaling 50-75% costs with VAT excluded.

- The Competitiveness Support and Serbian Economy Internationalization Program SIEPA has been implemented as of 2006 and over 2000 companies which were approved more than RSD 700 mil in grants, participated. In the last, 14th round, a record number of 470 exporters,13 exporters-beginners and nine business associations, applied – Laganin said.

The state secretary in the Ministry of Finance and Economy, Alekdandar Ljubic, who pointed out that this is the first year where export is the main economy growth trigger in Serbia, delivered the contracts to companies.

- Thanks to our orientation and the work on the export-based Strategy of the Economy growth, the first half this year generated a growth of 21% while only April saw a record export to the tune of EUR 950 mil.

From fairto market presentation

The Competitiveness Support and Serbian Economy Internationalization Program provides funds for activities such as independent exhibition, certification, product internationalization, branch office set up at foreign markets.

Milomir Stankovic from Veliki Popovic, owner of Alumila, the company which produces PVC, applied for the first time for this kind of fund. He was approved RSD 350.000 for the ISO standards and C sign development.

- The company has been operating since 1977 and we have been exporting as of 2000. During the last year, we exported some 65% of production at the French market and we are planning to start exporting to Germany and Austria. I believe that these funds will help us because we in order to be able to count on export expansion, we need adequate documentation which accompanies exports and certification is one of the most important requisites.We are planning to open a branch office at the French market in the upcoming years. We visit their fair of construction which takes place every second year in Paris and I believe we will soon realize a more specific cooperation.

This year for the first time, reimbursement of expenses for intellectual property and software product localization, has been introduced through the program of support for exporters as a special program for exporters- beginners.

Belgrade-based Quantum Auto Market, producing car industry software,has been exporting as of 2005. They are presents at the markets of the southeastern Europe, the Czech Republic, Slovakia, Hungary, Turkey, Romania,and it will consume the approved funds for software localization at the Russian market.

- We received grants totaling RSD 335.000 and we will use them for translation and adaptation of software for the Russian market. We have been exporting as of 2005 and today almost all our products are exported. We have just a few clients in Serbia – Dragan Keselj, director of the company, says for eKapija.

Belgrade-based Capriolo, producing bikes in Backa Topola, was approved grants for the purposes of presentation at the international fairs in Europe. This company produces 100.000 bikes annually; some 50-60% is exported.

- We have our companies in Hungary, Bosnia,Italy and Croatia and we export to Germany, Austria, the Netherlands, Lithuania, the Czech Republic, Poland so there is no country in Europe where we do not export - Stanislav Jankovic, Sales Manager, says.

Jagodinska-based Trim,producing and servicing industrial ink jet printers for product labeling is oneof the rare if not the only company which exports to China.

- We are the first Serbian company which last year exported equipment to China. It is a line for packing pharmaceutical plastics. We did the work first for the American West Pharmaceutical and after we developed five these lines for the needs of this company, we were hired to produce, deliver and put into operation the same line for their plant in Shanghai– Miroslav Savic, the Regional Sales Manager at Trim, says for eKapija.

Savic is optimistic about the fact that Jagodina-based company will, during this or next year, start exporting to India and SIEPA has approved today grant for their presentation at the fair in Tirane.

Bad image of Serbia

According to exporters` image, the largest problems they are facing when placing their product at foreign markets are payment collection, complicated administrative procedures and a bad image of Serbia in the world.

- The biggest problem is the fact that we are Serbian company. It is always hard to start something more specific when you say where you are coming from. As for the product quality, we do not have issues. The only problem is position and image of our country at the market -director of Quantum Auto Market, Dragan Keselj says.

Exporters agree that these kind of programs SIEPA implements are useful for producers and that they contribute to capacity strengthening of local companies and associations so that these initiatives should be intensified.

The state secretary, Ljubic, also pointed out that economy growth and new vacancies are possible only if we are working on the improvement of business activities.

As the state secretary stressed out, it is necessary that Serbia exports finished products as much as possible as well as that large exporter cooperate with small companies so that the majority of suppliers of spare parts, components services and raw materials would be from Serbia.

I.B.

The list of all exporters which received grants can be seen here.